The Russian government, in partnership with BitRiver, the country’s largest crypto mining company, is embarking on a new venture to establish crypto mining data centers in BRICS countries. These nations—Brazil, Russia, India, China, and South Africa—are now at the forefront of Russia’s strategy to expand its mining operations and digital infrastructure on a global scale.
The collaboration between BitRiver and the Russian Direct Investment Fund (RDIF), the state’s sovereign wealth fund, was unveiled at the BRICS Business Forum in Moscow on October 18. The goal is to enhance Russia’s computing power internationally, leveraging both crypto and artificial intelligence (AI) technologies. By increasing Russia’s presence in global computing, the country aims to become a dominant force in data center infrastructure and AI projects.
BitRiver, which currently operates 21 data centers in Russia with plans for 10 more, is now setting its sights on BRICS countries for its next phase of expansion. CEO Igor Runets emphasized the partnership with RDIF to establish a strong infrastructure base for crypto mining and AI projects. The move to BRICS countries is driven by the global shortage of energy-intensive data centers, as crypto mining requires substantial electricity and space which is becoming scarce worldwide.
While specific deals with BRICS nations are yet to be finalized, Russia is actively pursuing opportunities in these markets. RDIF’s CEO Kirill Dmitriev highlighted the organization’s focus on expanding the capabilities of these data centers and scaling technologies within the BRICS markets to future-proof their operations.
The RDIF is leading the BRICS Business Council’s financial services and investments working group to establish a joint investment platform aimed at boosting high-tech industries like AI and crypto in BRICS nations. This initiative could potentially increase the collective GDP of BRICS countries by 1.2%, amounting to $370 billion per year.
Russia’s growing interest in crypto mining comes at a time when the country is facing economic sanctions. The government has publicly expressed caution regarding cryptocurrencies, but has been actively investing in the sector. Moscow is positioning mining as a key driver of economic growth, with the Energy Ministry offering surplus power to miners to support the industry’s development.
As the BRICS summit gets underway in Kazan, Russia, discussions around crypto are gaining momentum. Lawmakers are exploring the possibility of Russian miners selling their tokens to international buyers who could use cryptocurrencies like Bitcoin to bypass Western sanctions when paying for imports.
Renowned economist Richard Wolff believes that the BRICS coalition is gaining ground over the United States, which he suggests is on a decline. He pointed out the US’s failures in major wars and highlighted the economic advancements of BRICS nations compared to the US. Brazil’s President Luiz Inacio Lula da Silva, though absent from the summit due to health reasons, supports these developments and will participate via video call.
The integration of crypto mining and data center infrastructure into the BRICS countries signifies a shift in power dynamics and economic strategies, with Russia at the forefront of this transformative initiative.